New Delhi: The Coal Ministry has asked Coal India Ltd and NLC India Ltd to go for pithead-based thermal projects with an aim to reduce transportation cost and improve availability of dry fuel, a top government official said. The plan is that all new thermal projects of Coal India Ltd (CIL) and NLC India Ltd should come up near the coal mines, Coal Secretary Amrit Lal Meena told. This will reduce the dependence on transportation, which is mostly through rail and road, and make the coal accessible for usage in power generation, he said, while replying to a question on new projects of coal PSUs, the official said.
The move will also reduce logistics cost and cost of power generation, he said, listing the benefits of a pithead-based unit. Coal India has signed an agreement with Rajasthan Urja Vikas Nigam Ltd (RUVNL) for a joint venture to set up 4,100 megawatt of power generation capacity in Rajasthan, Meena said.
